• Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA
Wednesday, February 1, 2023
WongaNews.com
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
WongaNews.com
No Result
View All Result

How To Avoid Failed NFT Projects

August 19, 2022
in NFT News
Reading Time: 3 mins read
A A
ShareShareShareShareShare

Related articles

NFT Sports Brand Sorare Partners with Premier League

January 31, 2023

Trevor Jones Takes EthBoy London’s Oxford Street

January 31, 2023

Preview in new tab

NFTs have recently attracted a lot of attention and developed into a Web3 phenomenon that has drawn global interest. While some NFT collections, like the Bored Ape Yacht Club and Moonbirds, are highly valued, countless others have fallen by the roadside and are no longer relevant. If you have been pondering the reason why some NFTs fail as soon as they launch while others make a lot of money, keep reading. 

What is A Failed NFT Project?

An NFT project is considered to have failed if its initial floor price has dropped by more than sixty percent and its trade volume has decreased over time. Within the first six months following launch, an unsuccessful NFT project’s floor price can decrease by as much as 90 percent or more. Also, if an NFT project is unsuccessful, the number of holders will likewise fall; however, there is also the possibility that the number of holders will increase due to a low floor price. Nevertheless, the project is still a failed one.

How To Avoid Failed NFT Projects

There are a few factors to look out for when considering investing in an NFT project:

-Exclusivity

NFTs like CryptoPunk and Crossroads by Beeple have shown that exclusivity sells. There is a lot of plagiarism in the NFT space. Copy-paste jobs that use other people’s concepts, art styles, utilities, marketing plans, and merchandise. If the NFT wholly or partially plagiarizes other efforts, this should raise a red flag. While not entirely a bad thing, copying almost always indicates a lack of creativity and market direction. 

The result is that in the case of a bearish market, the creators will be at a loss for solutions, due to a pre-existing lack of vision. The lack of rarity and uniqueness in a project that has thousands of competing NFT projects operating similarly will cause it to fade into the shadows of the NFT trash market. Supportive movements rarely stand out and do not make for a profitable project.

A project’s community is the most important factor in determining whether or not it will be successful after it launches. The maintenance of an active and active community of supporters is one of the most significant things that contribute to the success of a project. A project can’t be successful without engagement.  NFT projects develop communities on a variety of platforms, including Discord and Telegram, among others. 

Be sure to have a look at the number of people using the NFT collection’s Discord channel. It is either about to fail or has already failed if it has a very small community size. Or if the community is average and the project is not interesting enough to keep the audience’s attention, the NFT project will likely be unsuccessful.

-Investigate For Rug Pull

Rug Pulls are arguably the worst way for an NFT to fail because there is almost no way to prepare against it. A rug pull occurs when the proprietor of an NFT project liquidates the NFT project to siphon funds. The major reason it happens is when NFT creators and artists decide to cease producing new content causing the NFTs to lose their value. The result is that investors lose all of their money in a very short period.

Carrying out a rug pull bears great risk to the owner’s reputation because of the devastation it brings to the collector’s investments. A good example is the almost rug pull of Pixlemon. The best way to avoid this is to carefully investigate the team members of a project for previous shady dealings before investing. Also, avoid projects with anonymous creators.

-Team and Competence

A poorly managed and inept team is one of the primary reasons why the majority of NFT projects are unsuccessful. If the NFT project does not have a group of highly trained specialists working on it, don’t invest. When the correct team of highly trained experts is assembled for a project, that project has a much better chance of being successful.  

-Marketing

NFT projects also fail because insufficient attention is paid to the marketing aspect. There are so many prospective buyers and collectors in the market, so the marketing has to be intensive. Check how many different marketing platforms they are employing, as well as the number of customers they already have gained.

Conclusion

Before you put money into NFT ventures, you should investigate thoroughly from every critical angle first. Before you get involved in any NFT enterprise, you should make sure you have a way out and know how much of a loss you can readily stomach. This way you can be more confident and better prepared.

Credit: Source link

ShareTweetSendPinShare
Previous Post

ECB Creating a Harmonized Regulatory Framework Governing Crypto Activities and Services – Regulation Bitcoin News

Next Post

Bitcoin Sinks Below $23K; South Korea’s Bumpy Crypto Path Forward

Related Posts

NFT Sports Brand Sorare Partners with Premier League

January 31, 2023

NFT Fantasy Sports brand Sorare has partnered with the FA in a deal worth $30 million. The major announcement sees...

Trevor Jones Takes EthBoy London’s Oxford Street

January 31, 2023

Look out, London! England’s capital city is about to get a taste of NFT art thanks to legendary Scottish artist,...

WAX Blockchain Unveils Web3 Masterplan

January 31, 2023

Leading NFT protocol, the Wax Blockchain, has unveiled its game plan for conquering Web3 in 2023. The protocol has managed...

Proof Unveils Artists Behind Grails III NFT Collection

January 31, 2023

Popular NFT collective, Proof, has finally revealed the names of artists behind Grails III NFT collection. The revelation happened last...

NFT Trademark Fillings Suggest Top Companies are Committed to Web3

January 31, 2023

NFT naysayers will have you believe the NFT bubble has burst. However, NFT trademark filings from top companies suggest something...

Load More
Next Post

Bitcoin Sinks Below $23K; South Korea's Bumpy Crypto Path Forward

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Stack Sats for Playing Chess

January 26, 2023

Warner Music Group Demo Drop in The Sandbox

January 30, 2023

US SEC Investigates Investment Advisors About Crypto Regulations By CoinEdition

January 27, 2023

About Us

Wonga News is an online news portal that aims to provide the latest crypto news, blockchain, regulations, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch with us!

What’s New Here!

  • United Kingdom Finance Ministry proposes new crypto regulations, focus on consumer protection
  • Metaverse Tokens Outperform Top Crypto Assets in 2023 With Decentraland’s MANA Leading the Pack – Metaverse Bitcoin News
  • NFT Sports Brand Sorare Partners with Premier League

Newsletter

Loading
  • Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 WongaNews.com - All Rights Reserved!

No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading

© 2022 - WongaNews.com - All Rights Reserved!

  • bitcoinBitcoin(BTC)$23,078.001.00%
  • ethereumEthereum(ETH)$1,585.220.92%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.00-0.08%
  • usd-coinUSD Coin(USDC)$1.00-0.23%
  • binancecoinBNB(BNB)$312.741.82%
  • rippleXRP(XRP)$0.4057672.94%
  • binance-usdBinance USD(BUSD)$1.00-0.14%
  • cardanoCardano(ADA)$0.3907954.88%
  • dogecoinDogecoin(DOGE)$0.0950076.45%
  • matic-networkPolygon(MATIC)$1.122.54%
  • okbOKB(OKB)$37.860.97%
  • solanaSolana(SOL)$23.83-0.27%
  • staked-etherLido Staked Ether(STETH)$1,578.350.66%
  • polkadotPolkadot(DOT)$6.250.98%
  • shiba-inuShiba Inu(SHIB)$0.0000122.43%
  • litecoinLitecoin(LTC)$94.051.69%
  • avalanche-2Avalanche(AVAX)$19.720.30%
  • tronTRON(TRX)$0.0624360.15%
  • daiDai(DAI)$1.00-0.23%
  • uniswapUniswap(UNI)$6.560.80%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$23,083.001.26%
  • cosmosCosmos Hub(ATOM)$13.391.39%
  • chainlinkChainlink(LINK)$6.950.14%
  • ToncoinToncoin(TON)$2.301.56%
  • leo-tokenLEO Token(LEO)$3.55-1.52%
  • moneroMonero(XMR)$177.770.81%
  • ethereum-classicEthereum Classic(ETC)$21.621.08%
  • AptosAptos(APT)$16.65-2.98%
  • bitcoin-cashBitcoin Cash(BCH)$133.441.98%
  • Aerarium FiAerarium Fi(AERA)$7.12-13.06%
  • stellarStellar(XLM)$0.0905750.74%
  • apecoinApeCoin(APE)$5.871.12%
  • quant-networkQuant(QNT)$142.371.00%
  • crypto-com-chainCronos(CRO)$0.0789671.52%
  • nearNEAR Protocol(NEAR)$2.310.40%
  • filecoinFilecoin(FIL)$5.212.11%
  • lido-daoLido DAO(LDO)$2.206.37%
  • algorandAlgorand(ALGO)$0.2410950.51%
  • vechainVeChain(VET)$0.023184-0.06%
  • internet-computerInternet Computer(ICP)$5.882.07%
  • hedera-hashgraphHedera(HBAR)$0.064671-0.54%
  • decentralandDecentraland(MANA)$0.773.56%
  • fantomFantom(FTM)$0.5310.96%
  • axie-infinityAxie Infinity(AXS)$10.931.24%
  • aaveAave(AAVE)$82.972.13%
  • terra-lunaTerra Luna Classic(LUNC)$0.0001723.82%
  • eosEOS(EOS)$1.061.13%
  • the-sandboxThe Sandbox(SAND)$0.742.84%
  • flowFlow(FLOW)$1.068.21%